"What is wrong here? Is it that my forend has somehow become loose and doesn't fit properly anymore or am I missing something here?"
If you hold the metal frame of the gun in one hand, and the forearm in the other, then give a firm twisting motion.
If you can see movement by the spacer or at the barrel breech you have an issue. It's really not that complicated, consistant shooting is about consistantcy. Without a consistantly snug lock up, the barrel is sitting in a different place everytime it's opened and closed
Have you ever tried tightening the screws that hold the spacer in? Could be that Yes, after two years something has changed, wood dries and changes, wood pulls in moisture and changes, parts wear in and need tightening up.
It might be time for a bit of a shim, Aluminum foil is .0005, folded it's .001, folded again it's .002,,,so try a few layers in there and see if it tightens up any play. No body said a shim has to be glued in, that part is not carved in stone.
Do, some of the things listed in the faqs,??
The "O" ring isn't the only thing listed in the faqs, it just seems to be the patent and easiest answer for everyone that comes along.'
Short of being there to handle your gun and watch you shoot, there is frustratingly little you can do on a web site to help someone sometimes.